The Ghana Cocoa Board (COCOBOD) has disclosed that it has only managed to recover 10% of the GH¢19.4 million advanced as a seed fund to three licensed buying companies (LBCs) during the 2022/2023 cocoa season.
The companies involved are Universal Cooperative Commodity Limited, Cocoa Ahenfo, and Produce Buying Company Ltd (PBC).
During a Public Accounts Committee (PAC) hearing on Tuesday, COCOBOD’s Deputy Chief Executive in charge of Finance and Administration, Emmanuel Ray Ankrah, revealed that out of the total debt, approximately GH¢700,000 has been recovered so far.
Ankrah assured the committee that efforts to retrieve the remaining funds are ongoing.
In detailing the recovery efforts, Ankrah explained that COCOBOD has managed to recover GH¢680,000 out of GH¢2.59 million from Cocoa Ahenfo.
For Universal Cooperative Commodity Limited, a legal suit has been filed against the guarantor, Unique Insurance, to recover the money. As for PBC, Ankrah noted that the situation is more complex, with a remaining debt of GH¢14 million.
He mentioned that a provisional agreement is being considered for the 2024/2025 season, allowing COCOBOD to recover the funds through the margins earned by PBC.
COCOBOD’s Chief Executive Officer, Joseph Boahen Aidoo, added further context during the hearing, revealing that PBC had initially received about GH¢600 million, of which a substantial amount had already been repaid, leaving only the GH¢14 million outstanding.
Aidoo assured the PAC that PBC is committed to its payment plan and has the ability to settle the remaining debt.
An audit report presented at the hearing highlighted a locked-up investment of GH¢1.9 million with Zenith Bank Ghana Limited, which has not been redeemed since it matured in 2022 and 2023. COCOBOD has so far recovered GH¢55,000 from this investment and is actively pursuing the remaining amount.
